 In real estate, the questions on everyone's minds these days are: when is the market going to bottom out and when is the perfect time to buy? In cities like Charlotte, Seattle, Atlanta, Houston, and Dallas, the bottom of the market has already hit and they continue to post price gains despite nationwide troubles. These cities boast quality, affordable markets that have excellent job, economic, and population growth. However, in major metro areas like New York City, Philadelphia, and Washington D.C., economic conditions and housing inventories in these cities suggest they are hitting price troughs and are perfectly ripe for investments. Then there are markets like Denver and Detroit, which are expected to recover more slowly due to sluggish economic growth and a gross surplus of inventory. It is important to understand that real estate is a highly localized industry. While nationwide, the collective market is in a recession, there are still local markets that defy the trend. Here are several indicators of a recovering housing market: - Falling Inventory- this is basic rules of supply and demand... if demand decreases, supply must also decrease to keep home prices steady.
- Increasing Sales- in order to have falling inventory levels, there must be an increase in sales of new and existing homes to keep a market in balance.
- Decreasing Number of Days on the Market- the average numbers of days for-sale homes sit on the market before being sold is a good indicator of a market's health. Less time on the market equals a stronger market.
- Fewer Foreclosures and Short Sales- foreclosures and short sales bring down property values in their surrounding neighborhoods... the less there are, the better.
- The Return of Investors- professional investors will go out and find good investments, even if a market hasn't "officially" bottomed out, they know where to find the good deals.
(Posted by K.Skowronski)
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